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Driving Long-Term Success: The Impact of Customer Success on Customer Lifetime Value (CLV)

As a business owner or marketer, you’ve likely heard about customer lifetime value (CLV) and its importance in driving long-term business success. CLV represents the total amount of money a customer is expected to spend on a business’s products or services during their lifetime as a customer. The higher the CLV, the more valuable a customer is to a business.

But did you know that customer success plays a critical role in increasing CLV? In this blog post, we’ll explore the impact of customer success on CLV and why it’s important for businesses to focus on long-term customer value.

What is customer success?

First, let’s define customer success. Customer success is a business strategy that focuses on helping customers achieve their desired outcomes with a company’s products or services. It involves proactive engagement with customers to ensure they are getting the most value out of their purchase and are satisfied with their experience.

Customer success involves a range of activities, including onboarding, training, support, and ongoing engagement. The goal is to build a long-term relationship with the customer and drive retention and revenue growth.

How does customer success impact CLV?

Now, let’s explore the relationship between customer success and CLV. Customer success can impact CLV in several ways:


  1. Increased retention: By proactively engaging with customers and ensuring they are satisfied with their experience, businesses can reduce customer churn and increase retention rates. This means customers are more likely to continue using a business’s products or services and, as a result, spend more money over time.


  2. Increased upsell and cross-sell opportunities: By understanding a customer’s needs and goals, businesses can identify opportunities to upsell or cross-sell additional products or services. This can lead to increased revenue per customer and higher.

  3. CLV. Positive word-of-mouth: When customers have a positive experience with a business, they are more likely to recommend it to others. This can lead to new customer acquisitions and increased CLV.

  4. Reduced support costs: By proactively addressing customer issues and providing effective support, businesses can reduce support costs associated with customer complaints, refunds, and returns. This means more revenue goes towards the bottom line, increasing CLV.

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Empirical evidence

Data backs up the importance of customer success in driving CLV. According to a study by McKinsey & Company, companies that prioritize customer success see a 10-15% increase in revenue and a 20-30% increase in customer lifetime value. The same study found that increasing customer retention rates by 5% can increase profits by 25-95%.

Another study by HubSpot found that businesses that implement customer success strategies have a 26% higher retention rate and a 14% higher referral rate than those that don’t. This means that businesses with effective customer success programs are more likely to see long-term growth and success.

Why businesses should focus on long-term customer value

Finally, let’s talk about why businesses should focus on long-term customer value. While it’s tempting to focus on short-term revenue goals, businesses that prioritize long-term customer value are more likely to see sustainable growth and success.

By investing in customer success and focusing on the long-term, businesses can:


  1. Build a loyal customer base: By providing a positive experience and demonstrating value to customers, businesses can build a loyal customer base that is more likely to continue using their products or services. Increase customer lifetime value: By reducing churn and increasing upsell and cross-sell opportunities, businesses can increase customer lifetime value and drive revenue growth.


  2. Improve brand reputation: When customers have a positive experience with a business, they are more likely to recommend it to others and speak positively about it online. This can improve a business’s brand reputation and lead to new customer acquisitions.

  3. Reduce costs: By reducing customer churn and support costs, businesses can save money and increase profitability over the long term.


In conclusion, customer success plays a critical role in driving customer lifetime value and long-term business success. By prioritizing customer success, businesses can increase retention, identify upsell and cross-sell opportunities, and improve their brand reputation. The data shows that investing in customer success can lead to significant increases in revenue and customer lifetime value.

As a business owner or marketer, it’s important to remember that the customer’s success is your success. By focusing on their long-term needs and goals, you can build a loyal customer base that drives sustainable growth and profitability.

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